Turkey: Official inflation rate at 36 percent

The Turkish Statistical Authority (TURKSTAT) has published the inflation figures for December. According to the figures, the AKP model of “low interest rate, high exchange rate”, which was praised as the “new economic model of Turkey”, has failed miserably. The inflation rate has risen and prices on the domestic market have increased by 19.08 per cent on average. Domestic producer prices have increased by 79.89 per cent. The euro exchange rate is 15.48 lira.

The Turkish central bank intervened in the capital market five times in December on Erdoğan’s orders to stabilise the lira. Two billion in dollar reserves were sold for this purpose. The downward trend of the lira obviously continues after a short recovery.